The Ultimate Mortgage Calculator discussion

getmore4less

menaistrait said:

It would be great if on the 'compare' tool you could also add in the overpayments calculator as optional extra info.  Im trying to compare two mortgages right now, one has a higher rate but no fee and one is a bit better rate and a reasonable fee i can pay up front. and i plan to overpay whichever monthly while I can but I cannot work out which is best overall. iIf added it should be totally optional, to not complicate the tool obviously

and on a similar note:  ERC charges seem different per lender and I'm trying to compare 2 mortgage in this respect too. due to needing a BTL mortgage right now, but I may have to change this before product is finished due to moving back in (its dependent on if 'working from home' becomes policy/possible in my job)  it would be really handy if i could compare, rates, overpayments, ERC charges and fees over time,  probably not many people need this tho!

Generally these calcs are all GREAT! thanks MSE

Adding overpayments won't help the base calculations are wrong. 

menaistrait

getmore4less said:

menaistrait said:

It would be great if on the 'compare' tool you could also add in the overpayments calculator as optional extra info.  Im trying to compare two mortgages right now, one has a higher rate but no fee and one is a bit better rate and a reasonable fee i can pay up front. and i plan to overpay whichever monthly while I can but I cannot work out which is best overall. iIf added it should be totally optional, to not complicate the tool obviously

and on a similar note:  ERC charges seem different per lender and I'm trying to compare 2 mortgage in this respect too. due to needing a BTL mortgage right now, but I may have to change this before product is finished due to moving back in (its dependent on if 'working from home' becomes policy/possible in my job)  it would be really handy if i could compare, rates, overpayments, ERC charges and fees over time,  probably not many people need this tho!

Generally these calcs are all GREAT! thanks MSE

Adding overpayments won't help the base calculations are wrong. 

could you explain? are you saying the tool is wrong or something in my comment? 
the ERC part would be complicated in the tool and charges are generally standardised, but overpayments do make a difference when comparing interest rates and product fees don't they? so I just thought I'd mention it. Correct me if I'm wrong  

getmore4less

menaistrait said:

getmore4less said:

menaistrait said:

It would be great if on the 'compare' tool you could also add in the overpayments calculator as optional extra info.  Im trying to compare two mortgages right now, one has a higher rate but no fee and one is a bit better rate and a reasonable fee i can pay up front. and i plan to overpay whichever monthly while I can but I cannot work out which is best overall. iIf added it should be totally optional, to not complicate the tool obviously

and on a similar note:  ERC charges seem different per lender and I'm trying to compare 2 mortgage in this respect too. due to needing a BTL mortgage right now, but I may have to change this before product is finished due to moving back in (its dependent on if 'working from home' becomes policy/possible in my job)  it would be really handy if i could compare, rates, overpayments, ERC charges and fees over time,  probably not many people need this tho!

Generally these calcs are all GREAT! thanks MSE

Adding overpayments won't help the base calculations are wrong. 

could you explain? are you saying the tool is wrong or something in my comment? 
the ERC part would be complicated in the tool and charges are generally standardised, but overpayments do make a difference when comparing interest rates and product fees don't they? so I just thought I'd mention it. Correct me if I'm wrong  

you are right the actual payments are important to the calculations but the base that MSE calculator uses is wrong.

take the basic compare with the defaults for  £60k, 25y, 3.5%, 2.9% £1k fee(added)  3year fix.
https://www.moneysavingexpert.com/mortgages/compare-mortgage-rates/

cost over 3 years 
£10,817 V £10,301
£516 lower payments is that better take the fee?
difference  in debt 
£55,250 V £55,791 
£541 more debt   oh no after 3 years down £25  don't take the fee 

if you do cashflow, with same payment 

amount	rate	payment	owing
£62,000.00	2.90%	£305.38	£56,156.87
£61,000.00	3.50%	£305.38	£56,169.16

£12  better off  with the fee.

now to show your overpayment case,
make the payment £400

amount	rate	payment	owing
£62,000.00	2.90%	£400.00	£52,602.48
£61,000.00	3.50%	£400.00	£52,583.10

Now £19 worse off with the fee.

xyz123

Hi - A question on offset mortgage vs normal mortgage calculator if someone can help. I just used it but i cant seem to work out where it takes into account products fees. I am on a fixed mortgage and was looking to go to a offset mortgage as the savings interest rates are so low. 

getmore4less

xyz123 said:

Hi - A question on offset mortgage vs normal mortgage calculator if someone can help. I just used it but i cant seem to work out where it takes into account products fees. I am on a fixed mortgage and was looking to go to a offset mortgage as the savings interest rates are so low. 

IT won't.
Have not looked at that one for a long time but it was quite flawed last time I looked.

The issue now is many offsets are not the simple lifetime trackers that were a relatively easy option to work with.

the margins and fees now make them less attractive for many people and more difficult to compare as offset funds means you are comparing different borrowing levels and need to facto in savings interest

Toolman2001

Hi
Can anyone help with my conundrum please.

We have an interest only Mortgage (156K) and we are paying £350 pm interest only, with a period of 8 years remaing on this mortgage deal.
we are trying to pay off as much as possible before the end of our 8 year term and would like to see a calculation.

On the overpayment calculator we can see what a £400 pm overpayment would achieve, however we have income from a holiday rental that will be pumped into overpaying this mortgage from now on.
My problem is the calculator doesn't allow for putting in a yearly (or half year) one off payment for every year.
If we calculate say £5k a year as a one off payment (ie £416 pm) will this give me a similar result inputted as a monthly payment instead of yearly or half yearly payment.

Thank you

getmore4less

Toolman2001 said:

Hi
Can anyone help with my conundrum please.

We have an interest only Mortgage (156K) and we are paying £350 pm interest only, with a period of 8 years remaing on this mortgage deal.
we are trying to pay off as much as possible before the end of our 8 year term and would like to see a calculation.

On the overpayment calculator we can see what a £400 pm overpayment would achieve, however we have income from a holiday rental that will be pumped into overpaying this mortgage from now on.
My problem is the calculator doesn't allow for putting in a yearly (or half year) one off payment for every year.
If we calculate say £5k a year as a one off payment (ie £416 pm) will this give me a similar result inputted as a monthly payment instead of yearly or half yearly payment.

Thank you

The easiest way to work that out is to do the monthly payment for a year  and see how much you save.

interest only
£156,000.00	2.69%	£349.70	£156,000.00

overpayment

£416.67  £5kpy

£156,000.00

2.69%

£766.37

£150,937.85

Saves £62  paying monthly rather than leaving it to the end of the year.
That will compound but you will be close £100s out rather than £1000s

What the LTV  2.7% rate is high
Any chance you can get a better rate

Toolman2001

Thank you.

The 2.7% in on a mortgage current account Balance £25k o/d. (financed another property purchase for a family member).
Mortgage account is 0.25% above base rate with balance £130k.
If I understand correctly there isn't a better rate available ?
Unless I can move the overdraft on the current account?

getmore4less

Toolman2001 said:

Thank you.

The 2.7% in on a mortgage current account Balance £25k o/d. (financed another property purchase for a family member).
Mortgage account is 0.25% above base rate with balance £130k.
If I understand correctly there isn't a better rate available ?
Unless I can move the overdraft on the current account?

which lender? 
Maybe Barclays they have mortgage current accounts but the rate is 4.59%.
you won't get better than base + 0.25%
£350  payment makes no sense if it is all interest only
£130k @ 0.35% is £38  I/O 
£25k even at 5% would be £104
What rate is the current account?


I suspect all payments need to be directed to that current account and min to the £130k that is on a good rate. 

lord.ford

I'm sure this has already been covered but I'm confused as to the 'overpayment vs savings' approach of the the tool.

Specifically, I am confused as to why, when I put in a mortgage rate which is lower than the savings rate I will still be informed of the 'net gain' of overpaying the mortgage when surely I am making more money than I am saving opting for the higher savings rate. When determining the 'net gain', the tool seems to compare a) for overpayments, how much interest I saved compared to how much I would have paid over the full term, with b) for savings interest, the interest accrual at the time of me clearing the mortgage. What would seem to be fairer comparison is a) total mortgage cost with overpayments, with b) total mortgage cost when saving overpayments and then using that money to clear the mortgage early in one go - I suspect with a higher savings rate than mortgage rate, b) would work out lower.

I am a newb so may have totally missed something here!

Keep up the good work team